Property taxes are calculated by multiplying two factors – the taxable value of the property by the millage rate. A useful tool for estimating property taxes can be found here. If you wish to obtain the Township millage rate please contact our Finance Director Tim VanBennekom.

Assessed Value Determinations

The yearly determination of a property’s assessed value is done by the local township assessing department. The Assessor is required by State statute to assess all real and personal property in the township at fifty (50) percent of market value as of December 31st of each year.

Market Value is defined as “the most likely price that a property would sell for in an arm’s length transaction with no undue influence suffered by either the buyer or seller.” An individual selling price does not establish the assessed value of any property, rather an analysis of all sales is done to establish uniform values for all properties in Allendale Charter Township. Various factors are taken into consideration when establishing the assessment, including, but not limited to location, size and utilization, age, style, surrounding properties, and land and improvement values.

Taxable Value

With the advent of Proposal A (P.A. 415 of 1994), the value upon which property owners pay tax on is called the Taxable Value. This value is used to calculate one’s property taxes and has been set at the 1994 assessed value and multiplied by the rate of inflation for every year that it has been owned by the same entity. As long as the property has not transferred ownership and not been added to, the annual increase in taxes is limited (or capped) by the rate of inflation.

A mill represents $1 per $1000 of taxable value. Each governing body that levies property taxes sets its own millage rate annually. Usually, a township charter or a vote of the electorate has determined the maximum number of mills each governing body can levy.

Assessed Value (AV)

The assessor is statutorily required to set an AV equal to 50% of the market value of your property.

State Equalized Value (SEV)

SEV is the AV adjusted following county and state equalization. The County Board of Commissioners and the Michigan State Tax Commission must review assessments by property classification and adjust (i.e., equalize) them if they are above or below the statutory 50% level of assessment. Typically, SEV is the same as AV.

Taxable Value (TV)

TV is the figure used to calculate your property taxes. Multiplying the TV by the millage rate, then dividing by 1,000 will determine your tax liability. TV increases/decreases from year to year by the rate of inflation or 5%, whichever is lower. Transfers of ownership, which “uncap” the TV, and improvements to the property can increase the TV more than the rate of inflation. TV cannot exceed the SEV for the property.

How is the AV determined?

To ensure properties are assessed uniformly and at 50% of market value, the Ottawa County Equalization Department conducts annual sales and appraisal studies. These studies analyze the sale or appraised value of properties compared to their AV. Based on these studies, the assessor must increase or decrease values so that each class of property (e.g., residential, commercial, industrial, etc.) is at 50% market value. The sales studies are based on a two-year sales period from March 31 (current year) to April 1 (two years prior). Example: The 2023 sales study is April 1, 2020, through March 31, 2022.

Residential sales data is then organized, by the assessor, into economic neighborhoods. For residential properties an economic neighborhood can be a single subdivision or a grouping of areas with similar characteristics. If the sales in an economic neighborhood indicate an increase or decrease in value, the AV of properties in that neighborhood are adjusted uniformly based on conclusions drawn from the sales. To view Allendale Township Land and Economic Condition Factor (ECF) studies follow the provided link in the menu labelled Sales Study.

A similar method is used to value commercial and industrial properties, although some commercial properties are also valued using an income approach. Personal property is assessed using personal property statements reporting the assets of a business. December 31 is situs day (i.e., “Tax Day”) for property taxes in Michigan for assessments. All AV are determined as of that day.

Please follow this link on How to Read Your Assessment Notice.

If you are interested in learning more about what Proposal A is and its impact on property tax law in Michigan, please read ‘School Finance Reform in Michigan Proposal A: Retrospective‘ provided by the State of Michigan.

If you own and occupy a property that is considered your principal residence, you can file an affidavit that allows you to claim an exemption for up to 18 mills of school operating taxes. You must own and occupy the property (rental property may only receive a portion of the exemption) as of June 1 to qualify for the current year, otherwise the exemption will be placed on the property the following year, and must be filed with the Township Assessor.

If you are selling a property or your principal residence is no longer in Allendale, please submit the Rescission of the Principal Residence Exemption form with the Assessing Department.

Are you moving into the Township? Please submit the Property Transfer Affidavit with us, so the parcel owner information is current and up to date.

If you are experiencing hardship the poverty exemption is available to be exempt from property taxes (pending Board of Review evaluation of submitted documents). To be eligible for the exemption the applicant:

• Must be the owner of and occupy as principal residence, the property for which the exemption is requested.
• Annual household income shall not exceed the amount set by the Federal poverty guidelines.
• Total assets, essential household goods, and motor vehicles should not exceed the annually updated Federal poverty guidelines. Please refer to guidelines for additional information.

To apply for the exemption the applicant must submit all of the following:

• Poverty Exemption Application
• Submit copies of Federal and State income tax returns for all persons residing in the principal residence, including property tax credit returns (if any). An affidavit is required to be filed for all persons residing in the residence who were not required to file Federal or State income tax returns.
• Provide a valid driver’s license.
• Provide a deed, land contract, or other evidence of ownership.
• Provide evidence of other assets including investments, real property, and retirement accounts.

The Disabled Veteran Exemption (MCL 211.7b) is available to disabled veterans who use and own real property in Allendale Township that have been honorably discharged from the armed forces and are one of the following.

Have been determined by the United States Department of Veteran Affairs to be permanently and totally disabled at the 100% rate.

Have a certificate from the United States Veterans’ Administration certifying to be receiving or has received pecuniary assistance due to disability for specially adapted housing.

Is rated by the United States Department of Veteran Affairs to be individually unemployable.

A friendly reminder to disabled veterans in Allendale, in late autumn (November to December) you should be receiving a letter from the Veteran Affair office, which is a good time to visit the Town Hall to submit a copy of your letter and Disabled Veteran Exemption affidavit (form 5107) to the Assessing Department for March Board of Review.

Thank you for your service!

Welcome business owners!

Personal property used by businesses has been subject to taxation in Michigan. Effective for the 2014 assessment year, an exemption was created for the personal property owned by businesses if the true cash value of the personal property owned, leased, or possessed by a business or a related party is less than $80,000 within the assessment jurisdiction. This exemption has become known informally as the ‘small taxpayers’ exemption. The exemption is only for commercial and industrial personal property.

Personal Property Valued Less than $80,000.

To claim this exemption, the business must file Form 5076 – Small Business Property Tax Exemption Claim Under MCL 211.9o. This form must be filed (postmark is acceptable) with the Assessing Department by February 20 each year. Effective for the 2019 tax year, once the small taxpayer’s exemption has been granted, it will remain in place unless denied by the assessor or unless the business exceeds the $80,000 limit* (in which case the business must file a Personal Property Statement with the Assessor).

*Effective December 31, 2022, the TCV of personal property limit has been raised to $180,000, if this limit is exceeded a Personal Property Statement is required to be submitted to the Assessor. Other guidelines regarding P.A. 150 of 2021 are provided below.

Personal Property Valued Greater than or Equal to $80,000 and less than $180,000.

Starting in the 2023 tax year, to claim an exemption for personal property valued at $80,000 or more and less than $180,000, form 5076 must be filed with the Assessor no later than February 20, 2023 (postmark is acceptable) with a completed form 632 Personal Property Statement as an attachment to the form 5076 to verify the total true cash value and assist in identifying what assets are located in the Township. If the Personal Property Statement is not attached to the 5076 form, the exemption is considered incomplete and may be denied.

Note: If your business has closed or moved (i.e. within the Township or out of Allendale jurisdiction), please inform us, so we can update or close your personal property account. Taxpayers are required to maintain books and records for four years after filing a form claiming the exemption; penalties apply for fraudulent exemption claims. The Personal Property Tax forms can be found on the State of Michigan’s website

Are you looking to rent in Allendale Township? If so, please visit the Rental Department for additional information or contact Shelly Kowalczyk for further questions.